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Iain Duncan Smith criticises former chancellor’s housing polices

Former Conservative Party leader Iain Duncan Smith has criticised policies of former Conservative chancellor George Osborne with regard to housing.

Speaking at last week’s Landlord Investment Show, which took place at London Olympia, Duncan Smith, who until 2016 was the work and pensions secretary, said that Osborne had put policies in place that has had an adverse impact on the buy-to-let sector by deterring many landlords from expanding their portfolios.

The now former chancellor’s decision in 2016 to restrict mortgage interest relief to the basic rate of income tax and add a 3% levy on stamp duty for the purchase of additional homes has unsurprisingly not gone down well with landlords, as reflected by the fact that buy-to-let mortgage approvals have recently plummeted.

But the MP went on the record to show support for the idea of raising taxes on property investors who neglected to occupy their property, in order to avoid the proliferation of idle properties.

He cited policies carried out in the US, remarking: “We would be better off levying a tax on empty homes. For example, in New York, apartments can incur a tax of up to $20,000 if they are left empty.”

Poll: Do you think the former chancellor’s decision in 2016 to restrict mortgage interest relief to the basic rate of income tax and add a 3% levy on stamp duty for the purchase of additional homes has had an adverse impact on BTL landlords?

PLACE YOUR VOTE BELOW

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    All Mr Osborne has achieved is increased rents and more sleeping in shop doorways, clever man.

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    Hate is a strong word but if you hear on the news about him being decked in the street it will be me.
    If this tax was introduced for new properties purchased going forward I could accept this but retrospectively is a vindictive policy causing as Andrew says increased rents and more homeless on the streets

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    Incredibly I'll thought through legislation since 2015.
    Section 24, I've pushed rents up by 8.5% to pay for it.
    No Tenant fees, I've pushed rents up by 5% to pay for it.
    Moved from Rent increases on tenant moves, too annual inflation increases, another 2% a year!
    Think about the implications of your legislation before you pass it, however as landlords all around me sell up, the removal of section 21 will cause accelerated sell offs, more homelessness, less PRS and higher rents, well done the house of commons, medaling without real knowledge

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    Government always win they hold all the aces, their policy's has been a huge success at achieving their aim of destroying Private Sector Housing, why else would they have different rules for private LL's. They are rubbing their hands with glee every time a LL sells up another huge amount of SD that they would not otherwise get if not also exit taxes as well. I don't have the luxury to increase rent to cover costs in my area as already struggling to hang on to the ones I got. All this happened under the watch of a Conservative gov' that's supposed to be for & promote private business, general election on the way but no one to vote for again as last time so no point in me having the vote, all the party's seem to me to be on the band wagon to crucify private LL's, so we are supposed to vote for someone who is out to destroy us.

    Paul Barrett

    No point in hanging on if every five years there is the threat of expropriation by a Marxist Labour Govt.
    If Labour fail in this GE take the following 5 years as the opportunity to exit the PRS.
    Better still if you can retain one property unencumbered then take in lodgers.
    Go for only a 4 bed then no Mandatory HMO Licensing required.
    This is what I will be doing if I can once I have sold up in the coming 5 years.
    If Labour win all mine will be up for auction the day after the GE.
    If the Tories win then you can sell off one per tax year.
    Hanging on isn't really viable.
    It would only take IR increases to destroy 'hanging on' viability.

     
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    It will be a lot worse for us if Corbyn gets in though Michael, so I'm voting for Boris.
    The Limp Dems are very left leaning and are sure to have a go at landlords, so supporting them is not wise.
    I also don't have the luxury of raising rents to cover increased costs and even though rents are low in comparison to most areas of the UK, affordability is still the overriding factor over anything else.
    Even a slight rise in rent, would prompt a tenant to go elsewhere, that is the reality i'm afraid.

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